TY - JOUR
T1 - Bio-diesel production using mobile processing units
T2 - a case in Indonesia
AU - ten Kate, Joeri
AU - Teunter, Ruud
AU - Kusumastuti, Ratih Dyah
AU - van Donk, Dirk Pieter
PY - 2017
Y1 - 2017
N2 - Bio-diesel is a sustainable alternative to fossil fuel, in particular if the input materials are not edible. This paper considers the production of bio-diesel from rubber seeds, which are currently viewed as a waste product and discarded by farmers. We investigate whether technological innovations in local pre-processing at individual farms and oil production via mobile processing units (MPUs) visiting villages, makes bio-diesel production profitable for groups of farmers. A mixed integer programming model optimizing supply chain decisions is developed and applied to a specific case in Indonesia. We find that operating the relatively expensive MPUs at maximum capacity is essential for economic sustainability. Furthermore, variations in the price of bio-diesel affect the profitability and governments may consider offering minimum price guarantees.
AB - Bio-diesel is a sustainable alternative to fossil fuel, in particular if the input materials are not edible. This paper considers the production of bio-diesel from rubber seeds, which are currently viewed as a waste product and discarded by farmers. We investigate whether technological innovations in local pre-processing at individual farms and oil production via mobile processing units (MPUs) visiting villages, makes bio-diesel production profitable for groups of farmers. A mixed integer programming model optimizing supply chain decisions is developed and applied to a specific case in Indonesia. We find that operating the relatively expensive MPUs at maximum capacity is essential for economic sustainability. Furthermore, variations in the price of bio-diesel affect the profitability and governments may consider offering minimum price guarantees.
U2 - 10.1016/j.agsy.2016.12.015
DO - 10.1016/j.agsy.2016.12.015
M3 - Article
SN - 0308-521X
VL - 152
SP - 121
EP - 130
JO - Agricultural Systems
JF - Agricultural Systems
ER -